CREL Midterm P1 Review

How old must you be to become a NYS RE Salesperson?

18

Who issues real estate licenses in NY?

New York Department of State (DOS) Division of Licensing Services

How many hours is the RE Broker class?

152

What is an Associate Real Estate Broker?

A fully qualified broker who works as a salesperson under the employ of another broker.

How long are real estate licenses valid?

2 years and 22.5 hours of continuing education.

How long must a RE broker keep transaction documents?

3 years.

What is comingling in real estate?

The illegal act of mixing money or properties belonging to others with the broker's own funds.

What is the cost to get a real estate license?

$65 for salesperson, $185 for broker.

What is a sponsoring broker?

The principal broker in a real estate firm who trains and supervises associated licensees.

What is the difference between a kickback and a referral fee?

Kickback is illegal; referral fee is legal.

What happens to a RE Salesperson if the sponsoring broker's license is revoked?

The licensee's license is suspended.

Which agency can suspend or revoke RE licenses?

New York Department of State (DOS) Division of Licensing Services.

Who is exempt from having a real estate license?

Lawyers.

How can a licensee legally accept commission?

With full disclosure and informed consent from the sponsoring broker.

What is the classification of a license law violation?

A misdemeanor punishable by up to a year in jail and a fine of up to $1,000.

What is the term used to describe the principal in real estate?

Client.

What is the fiduciary relationship between the principal and the agent called?

Agency.

Who is owed Fair and honest dealing in a real estate transaction?

A Customer.

Who is the individual authorized to transact business for another?

Agent/salesperson.

Who hires and delegates to the agent?

Principal/Client.

What is the term for the agent's role in an agency relationship?

Fiduciary.

What are the Fiduciary Responsibilities?

OLD CAR: Obedience, Loyalty, Disclosure, Confidentiality, Accounting, Reasonable Care.

What is the difference between EXPRESS and IMPLIED Agency?

Express agency is created through words; implied agency is created through actions.

What are the three types of agents?

General Agent, Universal Agent, Special Agent.

What type of agent is a real estate agent?

Special agent.

When does an agency relationship end?

When the sale is completed, property is ruined, mutual agreement, etc.

What is a material fact?

Facts that can impact the value of the property.

What is dual agency?

Representing both parties in the same real estate transaction.

What is puffing in real estate?

Making exaggerated statements about a property.

How often does a contract need to be renewed between the broker and the independent contractor?

15 months.

What is an independent contractor?

A self-employed individual retained to perform a certain act.

What expenses do independent contractors pay?

All expenses, social security, income taxes.

How does an independent contractor get paid?

Commission, not hourly.

Which court case changed the interpretation of the Civil Rights Act of 1866?

Jones v. Mayer.

What is steering in real estate?

Pushing buyers to look at homes based on race or religion.

What is blockbusting?

A scare tactic used by agents to frighten homeowners into selling.

What is redlining?

Denying mortgage applications without looking at economic qualifications.

What is the difference between bilateral and unilateral contracts?

Bilateral involves both parties; unilateral relies on one party.

What is the difference between executory and executed contracts?

Executory is not fully performed; executed is completely performed.

What are the 5 elements of a Valid Contract?

Competent parties, Offer and acceptance, Consideration, Legality of object, Agreement in writing.

What is the difference between Void, Voidable & Unenforceable contracts?

Void does not meet essential elements; Voidable is valid but can be voided; Unenforceable is valid but cannot be legally enforced.

What is a Binder in real estate?

A pre-contract agreement including all valid elements of a contract.

What is a Rider in real estate?

An attachment to a contract with unique issues.

What is a contingency in real estate?

A condition that must be met before a sale can be finalized.

What is the statute of limitations for real estate contracts?

6 years for contracts; 10 years for lawsuits to recover real estate.

What does the statute of frauds state about real estate contracts?

Certain contracts must be in writing, such as sale of real estate.

What is an Assignment in real estate?

Someone else takes over obligations of one party to the contract.

What is Novation in real estate?

A new contract with different terms replacing an old one.

What is Equitable Title?

Temporary ownership until the actual deed is received.

What is Price-Fixing in real estate?

Setting commission rates to decrease competition.

What is a Group Boycott in real estate?

Multiple businesses ban together to stop working with a company.

What is a Tie-In Arrangement in real estate?

A stipulation that must be met to work with a salesperson.

What is a Market Allocation Agreement?

Agreement to work in designated areas only.